Title of Presentation “Conduct & Practice of Consulting

Engineers Bye-laws” of Pakistan Engineering Council(PEC)

Engineer Karamat Ullah ChaudryImmediate Past President ACEPPresident TCDPAPTechnical Adviser SMECFormer President and MD NESPAK

Section 1&2 Definitions

Defines “consulting engineer” and “professional engineer” under Article 2© & 2(j) of the Act.

“Allied Professionals” – Architect or Town Planner, Geologist, Hydrologist, Agronomist, Economist and such others as may be approved

Section 1&2 Definitions (continued)

Consulting Engineers, Employer, Foreign Consulting Engineer, Pakistan Consulting Engineer

Foreign consulting engineer appointed but PEC protects domestic consultant and malpractices

“Foreign consulting engineer” means the enterprise incorporated or registered as a consulting engineer outside Pakistan

Section 3 Ownership Chief Executive must be Professional Engineer with

minimum 5 years experience after MSc or 10 years after BSc

Minimum 51% should be owned by Professional Engineers remaining by other PE or Allied Professionals

Above not applicable to Public Sector firms. Directors should be PE or AP except one for Finance

P.E and firm should work solely as an independent entity having no conflicting interests such as construction

PE in public sector organizations can undertake private practice with permission

Section 4 General Regulations

A consulting firm is responsible for professional conduct of its employees

A consulting engineer or an Executive, Director, Partner, Sole Proprietor or MD shall have no conflicting financial interests

A consulting engineer shall not injure the interests of other consulting engineers

Dignified advertisement by cards, sign boards, brochures etc

Section 4 General Regulations (contd)

Seeking professional work through agent or seeking commission is prohibited

Selection of consulting engineer purely on financial bid is prohibited

No team up with construction company except specified work as consultant such as EPC Contracts

Section 5 Professional Liability

Twice the design fee for a proven fault Liability expires after three years of design

or one year of construction Liability insurance beyond the specified

limit of penalty is at the option of Employer Section 5(6) is ambiguous – unlimited

liability for misconduct (Revised but not notified yet)

Section 5 Professional Liability (contd)

No liability due for work done by another designer or by a constructor

Employment of employer’s staff without prior consent is prohibited

Exempted from above provisions in overseas jobs where local regulations are to be followed

Section 6 Selection Process

Engineering Services to be awarded only to registered consultants

Foreign consultants allowed to work in a joint venture if expertise not available in Pakistan

Foreign consultants allowed to work independently with prior PEC approval for short assignments on Technology Transfer Agreements

Section 6 Selection Process (continued)

Engineers proposed in proposal should be on the permanent strength of consultants

Award on technical competency and not only on financial proposal

Selection only through open competition with no bias in favor of public sector consultants

Section 7 Selection Procedure

Invitation for pre-qualification of consultants except for Technical Assistance

Two envelope proposals from pre-qualified consultants

Employer should specify in TOR the basis of selection

Qualified Committee to evaluate proposals based on QBS or QCBS only

Section 7 Selection Procedure (contd)

For complex projects QBS recommended

Open financial proposal of technically top three and make weighted evaluation ranking on Quality and Cost basis (QCBS)

Top ranking consultant will first be invited for negotiation

Section 8 Registration and Penalties

Renewal application by 1st November based on firm’s status as on 31st October every year

Consulting Engineer may continue working after renewal application unless refused renewal by PEC

Infringement of PEC Bye-laws will render firm to punitive action

False information to the PEC to be considered misconduct and liable to penalties

Working without registration or abetting such unauthorized practice is punishable

Section 9 Registration of Foreign Consultants

Two stage registration for foreign consultants A. PEC pre-registration for foreign consultants

but registration only on J/V with Pakistani firms upon fulfillment of PEC Guidelines in Sec 6(2)

B. Registration only on submission of J/V agreement with description of work and share of parties

Section 9 Registration of Foreign Consultants

Exempted for transfer of technology agreements

Registration of foreign consultants on project to project basis

Registration of foreign consultants to be renewed in order to operate in Pakistan

Appendix A Professional Charges

Remuneration of service by any one or combination thereof prescribed

Cost plus fixed fee and fixed lump sum payment are two widely used methods

PEC Guidelines highlight these two methods Remuneration include (a) Salary Costs, (b)

Overhead Costs, © Direct Non Salary Costs and (d) Fixed Fee

Appendix A Professional Charges (contd)

Above components are well defined but not the fee

Rest of the Appendices relates to Registration procedures

Suggestions for Improvements (contd)

Opening of only technically top-ranked consultants’ financial proposal in Quality based selection

Remedy for unholy alliance between consultant and the employer

Remedy for consultants delay Categorization of consultants for pre-

qualifications

Suggestions for Improvements (contd)

Dual Registration by the Departments

Rationalization of Consultants fee

Ensuring implementation of Bye-laws

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